Money The Irrationalities of the Credit System
posted by on June 19 at 14:07 PM
Banks Find New Ways To Ease Pain of Bad Loans:
In January, Astoria Financial Corp. told investors that its pile of nonperforming loans had grown to about $106 million as of the end of last year. Three months later, the thrift holding company said the number was just $68 million.How did Astoria do it? By changing its internal policy on when mortgages are classified on its books as troubled. The Lake Success, N.Y., company now counts home loans as nonperforming when the borrower misses at least three payments, instead of two.
As long as there's a disclosure, fine by me. How exactly is this irrational?
It ain't just them.
It's WaMu.
And that ... well, in addition to the layoffs happening tomorrow ... is not good.
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